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Christopher Lewis
Silver daily chart, August 09, 2019

Silver markets continue to hang about the $17.00 level, an area that of course will attract a lot of attention because it is a large, round, psychologically significant figure. Looking at the chart, I recognize that we have gotten a bit extended, so it’s likely that market participants will perhaps be looking to take a bit of profit here at this large number. That doesn’t mean that the move is over though, what it has me thinking is that we might get a short-term pullback that gives us an opportunity to take advantage of value underneath as it’s obvious that we are now in and uptrend.

SILVER Video 08.08.19

That being said, the $17.00 level has been rather resistive in the past, so it makes sense that it would take several attempts to finally break above there. I do think it happens though, especially considering that both central banks around the world are looking to cut interest rates. With that, it does drive money into “hard money”, which of course is indicative of people willing to buy precious metals at this point. Silver of course also has a bit of an industrial component to it, so it does suffer at the hands of negative economic figures. It is because of this that sometimes silver will lag behind gold, but once it starts moving it takes off.

Remember, silver is a much larger contracting gold so it takes a lot less momentum and movement to make a profit. That being said, it also works both ways. Currently, I see the $16.60 level is an excellent opportunity if we can get a pullback to that region.

Please let us know what you think in the comments below

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